Saturday, May 17, 2008, 5:59PM ET - U.S. Markets Closed.
Updated from 10:47 a.m. EDT
With rumors Jerry Yang is being "benched" and Roy Bostock will now head Yahoo's effort to get Microsoft back to the negotiating table, a few things are clear:
The problem for those buying Yahoo stock on hopes for a revival of negotiations (or a big Google outsourcing pact) is that walking away doesn't appear to be a negotiating tactic.
From Steve Ballmer's "clearly a deal is not meant to be" comment Saturday to Bill Gates' comments Monday on Fox Business News, the message from Microsoft is clear: "We've moved on," as Windows Live GM Brian Hall put it on Tuesday.
Update: In Tokyo Wednesday, Gates added: "Now at this point Microsoft is focused on its independent strategy."
Taking that message at face value, there really appears to be only one way for Yang, Bostock, and their M&A advisors to get Microsoft back to the negotiating table: Deliver Yahoo to Ballmer on a silver platter, with assurance of talent retention, regulatory assurances, and a deal price tied to performance targets.
In other words, Yahoo needs to do a 180-degree turn from its prior negotiating tactic of "any deal but Microsoft."
Barring that, expect some major fireworks at Yahoo's July 3 shareholder meeting.
yahoo has shocked us all and left us questioning there business decisions. they owed it to themselves not to mention there shareholders to take microsoft seriously and to see how this union could have been used to create a even better product going forward.
It is very clear that "Ego" was the main factor from yahoo side. This was not a business like dealing. You can not keep pushing the other side into a corner and expect them not to walk away. I believe MS behaved in a very professional manner. Yahoo lacked it completely.
what are you whinning about, i own TMA
Yahoo has pretty good product on it's own. I enjoy yahoo's financial section and yahoo news. Too bad they are not able to attract the same ad revenue as Google. I do think yahoo should try to find better partners other than microsoft and retain control. I can't image yahoo turning into that fugly msn site!
Kudos to Yahoo and Jerry Yang. This merger would have been bad news for people like us that get yahoo email/groups etc for free. MS would have probably shutdown the free stuff with hardly any competition left.
58% of all mergers destroy shareholder value (http://www.bowne.com/securitiesconnect/details.asp?storyID=136). Kudos to Microsoft for not overpaying on this one, as so many companies get sucked into doing.
Fools know no wrong! Jerry Yang, your ego gets the better of you! You turns victor (shareholders) into victims of your own ego!
Fools know no wrong! Jerry Yang, your ego gets the better of you! You turns victor (shareholders) into victims of your own ego!
These were the same two idiots that said, repeatedly, over the past two months "THIS IS A DONE DEAL."
This is the best that could happen, I didn't want this to happen, lots of yahoo's services could have vanished with this merger. People wanted this to happen because they wanted quick money, the 33$ share price will be there by the end of the year, Yang made the right move, if MSFT wanted this deal to happen they should have offered a better price, Its true that MSFT did not need YHOO that badly, neither did YHOO needed MSFT Badly. Yahoo is working on fixing their financial status any way, and they will be there.
This is the best that could happen, I didn't want this to happen, lots of yahoo's services could have vanished with this merger. People wanted this to happen because they wanted quick money, the 33$ share price will be there by the end of the year, Yang made the right move, if MSFT wanted this deal to happen they should have offered a better price, Its true that MSFT did not need YHOO that badly, neither did YHOO needed MSFT Badly. Yahoo is working on fixing their financial status any way, and they will be there.
It just goes to show that a bunch of "very smart", high profile execs trying to determine the should a deal happen,if a deal will happen or how a deal will happen are no more assured of success than 2 seven year olds agreeing to sell their lemonade stands to each other. Both of these companies have been trying to fix holes in their respective businesses for some time without much success. I'm not convinced a merger would have been the magic band aid. Just seems like a big culture clash. By the time they shore up their respective search/ad business models, I'm sure even Google will be looking at whatever the next disruptive threat that is bound to come along and scare all three of them. Technology move fast.
MSFT is obviously intent on competing with Google in web services. I think to effectively compete MSFT wanted to acquire YHOO for its value to MSFT: 1) talent and 2) its existing apps (and associated clicks) ... perhaps even too its business model. While integrating development teams would have happened over time, MSFT is smart enough to know that its not the only innovator around as many of its products have resulted via acquisitions. Time is money ... and money has a time value. A dollar today is worth more than a dollar tomorrow. For the YHOO acqusition to make sense for MSFT, it would have to occur sooner then later with value intact.
Yahoo is not the only choice for MSFT. But to complete with Google, you have to defeat (if possible) it in its strongerest division(Web Service or Web Ad). Google needs money to complete with MSFT in Office Software (it is free!). For this purpose, MSFT have to acquire YHOO.
Both parties made the right move because they have a choice. A negotiation does not always result in a deal and that is okay. Those who really screwed up were the ones that cut and run, because I just snatched up their shares at $24.. Besides, I would rather have an individual with passion and vision, like Jerry Yang, doing the negotiating then some Monday morning quarterback beyatch!
Both parties made the right move because they have a choice. A negotiation does not always result in a deal and that is okay. Those who really screwed up were the ones that cut and run, because I just snatched up their shares at $24.. Besides, I would rather have an individual with passion and vision, like Jerry Yang, doing the negotiating then some Monday morning quarterback beyatch!
All the MS bashers need to take a pill. MS wouldn't start charging for currently free services like e-mail. That is the most ridiculous thing I've heard yet. You may hate MS, but the fact of the matter is they didn't get to be a huge company by making stupid decisions. I personally think Ballmer is pulling the biggest mind f#ck since New Coke. If they do buy Yahoo now, it wont be for $33 bucks.
Wasn't I hearing about Jehoo's brilliance in playing MSFT about a week ago?
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sydney_ponson - Wednesday May 07, 2008 11:07AM EDT
Yahoow as silly to play hardball. How in the world could you expect double of your stock value? Microsoft does not need you that badly. Your stock price now is what is should be. Your execs blew it.